Japan is mulling a review of tax exemptions for small parcels including those shipped from China, joining a slew of governments stepping up scrutiny over a duty-free channel used by Shein and PDD Holdings’ Temu.
A government tax experts group last week discussed problems related to existing tax exemptions for small parcels shipped to Japan, according to the Cabinet Office. They looked at concerns about fair competition and the channel being a conduit for illegal drugs and counterfeit goods into the country.
If the exemptions are revised, small parcels containing products bought from Shein and Temu shipped into Japan could be subject to the country’s sales tax, which mostly stands at 10%. Parcels that are worth less than ¥10,000 ($69) are currently broadly exempt. A separate panel set up by the Finance Ministry is also looking into similar issues.
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